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Delta, Pilots End Talks on Pay Cuts

Posted on: Wednesday, 23 July 2003, 06:00 CDT

Negotiations between Delta Air Lines and its pilots over wage concessions appear to have broken down, the union said Wednesday, citing philosophical differences.

In a memo to pilots, union spokesman Mike Pinho said the negotiating committee decided after two days of meetings in Cincinnati that it won't sit back down at the table with management until the company addresses the union's concerns.

"While there are significant differences in our philosophical perspectives on pilot involvement, your negotiating committee is prepared to engage in future negotiations," Pinho wrote. "This will occur when Delta management agrees to adopt the aforementioned philosophical imperatives."

Pinho said Delta's proposal requests significant pay reduction now, followed by further negotiations in the fall of 2004. He said the concept is inconsistent with the union's vision of pilot investment in the financial recovery of the airline.

Pinho said that Delta pilots want a contract extension as part of any agreement with the company. He also said that the union doesn't believe that pilot costs at Delta should be made in line with other debt-ridden airlines that have restructured of late.

American Airlines, the world's largest carrier, won deep concessions from pilots.

In late June, Atlanta-based Delta, the nation's third-largest carrier, and its pilots union opened talks to discuss wage concessions.

Delta has said it wants to cut pilots' hourly wages by 22 percent, cancel pay raises due over the next year and reduce some benefits. The airline also wants to rescind a 4.5 percent raise the pilots received May 1 and a similar raise due next May.

Chief executive Leo Mullin said as recently as last week that negotiations between the union and company were continuing and that he was confident a mutually acceptable resolution could be worked out.

Delta, which lost $1.3 billion last year, has reduced its staff by 16,000 since the Sept. 11, 2001, terrorist attacks and furloughed hundreds of pilots. It had said it needs to reduce pilot costs as part of its recovery.

Pinho said the union "will continue to closely monitor the status of our industry."

He added, "We stand ready to engage management when they appreciate the considerable value of pilot participation in the financial recovery of our airline."

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